Removing Barriers Blog

Cato Institute Releases Poll: Americans Lack Confidence in Wall Street and Regulators
Posted September 21,2017 by CUNA Advocacy

Earlier this week, Politico published an article citing a recently released poll by the Cato Institute that “Americans don’t want more rules placed on the financial industry, but rather more enforcement of existing rules and better rules.”   

In the survey report, Cato found that most American’s believe regulators are ineffective, selfish, and biased:  

  • 74% of Americans believe regulations often fail to have their intended effect. 

  • 75% believe government financial regulators care more about their own jobs and ambitions than about the well-being of Americans. 

  • 80% think regulators allow political biases to impact their judgment. 

But most also believe regulation can serve some important functions: 

  • 59% believe regulations, at least in the past, have produced positive benefits. 

  • 56% say regulations can help make businesses more responsive to people’s needs. 

Credit unions know first had that many of the CFPB’s rules and regulations have adversely affected the way they operate and serve their 110 million members.  These regulations, intended for the bad actors who caused the financial crisis, are often overly complex and burdensome for credit unions and small financial institutions with small compliance teams instead of the army of compliance attorneys on Wall Street.    

Credit unions would strongly support enforcing current regulations against bad actors. However, there is no need to keep adding more regulatory burden onto the backs of credit unions when they are already serving consumers in safe and affordable ways.  

While changes are not going to happen overnight, CUNA has been actively engaged with Congress and have had multiple witnesses testify before Congressional Committees on behalf of common-sense regulations.